Energy Legislation (Miscellaneous Amendments) Act 2001 (Vic)

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Energy Legislation (Miscellaneous Amendments)

Act 2001

Act No. 85/2001

TABLE OF PROVISIONS

Section Page
PART 1—PRELIMINARY 1
1. Purpose 1
2. Commencement 1
PART 2—ELECTRICITY INDUSTRY ACT 2000 3
3. New section 7A inserted 3
7A. Application of the Office of the Regulator-General Act
1994 3

4.        Repeal of certain provisions referring to Office of the

Regulator-General Act 1994 3
5.
Consequential amendment 3
6.
Supplier of last resort 3
7.
New section 39 substituted and section 40 repealed 4
39. Deemed contracts for supply and sale for relevant
customers 4
8. Prohibited interests 8
9. Amendment of section 7A to change Act references 8
PART 3—GAS INDUSTRY ACT 2001 9
10. Consequential amendment 9
11. Supplier of last resort 9
12. New section 46 substituted and section 47 repealed 9

46.          Deemed contracts for supply and sale for relevant

customers 9
13. Approval of rules by ORG 13
14. Cost recovery 13
15. Provision by VENCorp of certain services outside Victoria 14
16. Amendment of reference to ORG 15
17. Correction of minor errors 15

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ENDNOTES 16

i

Victoria

No. 85 of 2001

Energy Legislation (Miscellaneous

Amendments) Act 2001†

[Assented to 11 December 2001]

The Parliament of Victoria enacts as follows:

PART 1—PRELIMINARY

1. Purpose

The purpose of this Act is to make miscellaneous amendments to the Electricity Industry Act 2000 and the Gas Industry Act 2001.

2. Commencement

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 2 Act No. 85/2001

(1) Sections 1, 3, 4, 6, 8, 11, 13, 14, 15, 17 and this section come into operation on the day after the day on which this Act receives the Royal Assent.

(2) Sections 5, 7, 9 and 16 come into operation on

1 January 2002.

(3) Subject to sub-section (4), the remaining

provisions of this Act come into operation on a
day to be proclaimed, not being a day before

1 January 2002.

(4) If a provision of this Act does not come into

operation before 31 December 2002, it comes into

operation on that day.

_______________
Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 3

PART 2—ELECTRICITY INDUSTRY ACT 2000

3. New section 7A inserted

See:

After section 7 of the Electricity Industry Act Act No.
2000 insert— 68/2000
and
"7A. Application of the Office of the Regulator- amending
Act Nos
General Act 1994 13/2001,
32/2001 and
For the purposes of the Office of the 44/2001.
Regulator-General Act 1994— LawToday:
(a) this Act is relevant legislation; and dpc.vic.
gov.au
(b) the electricity industry is a regulated industry.".

4. Repeal of certain provisions referring to Office of the Regulator-General Act 1994

(1) Sections 9, 67 and 79C of the Electricity

Industry Act 2000 are repealed.

(2) In section 12(1) of the Electricity Industry Act

2000, paragraph (a) is repealed.

5. Consequential amendment

In section 21(k) of the Electricity Industry Act
2000, for "sections 39 and 40" substitute

"section 39".

6. Supplier of last resort

After section 27(10) of the Electricity Industry
Act 2000 insert—

"(10A) The terms and conditions of a requirement referred to in sub-section (1) may include a condition setting out circumstances in which

a licensee must continue to supply or sell
electricity to a customer to whom the
licensee supplies or sells electricity under an
obligation under sub-section (5) after that

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 7 Act No. 85/2001

obligation comes to an end in accordance
with sub-section (5A)(a).

(10B) A condition referred to in sub-section (10A) must provide for the tariff or tariffs and the terms and conditions for the continued

supply or sale of electricity to be determined

by the licensee.".

7. New section 39 substituted and section 40 repealed

For sections 39 and 40 of the Electricity Industry
Act 2000 substitute—

'39. Deemed contracts for supply and sale for

relevant customers

(1) If a relevant customer commences to take supply of electricity at premises from the relevant licensee without having entered into

a supply and sale contract with that licensee,
there is deemed, on the commencement of
that supply, to be a contract between that
licensee and that customer for the supply and

sale of electricity—

(a) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract

under section 37; and

(b)

on the conditions determined and sub-section (5).

(2) If a relevant customer—

(a) commences to take supply of electricity at premises under a supply and sale contract with the relevant licensee; and
(b)

that customer cancels the supply and period relating to the contract; and

Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 7
(c)

that customer continues to take entering into a further supply and sale contract with that licensee—

there is deemed, on the cancellation of the
supply and sale contract, to be a contract
between that licensee and that customer for

the supply and sale of electricity—

(d) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract

under section 37; and

(e)

on the conditions determined and sub-section (5).

(3) A deemed contract under sub-section (2) is

deemed to commence on the commencement

of supply referred to in sub-section (2)(a).

(4) If a supply and sale contract referred to in

sub-section (2)(a) is—

(a) a contact sales agreement within the meaning of the Fair Trading Act 1999, sections 65 to 67 of that Act do not apply on the cancellation of that contract;
(b) a non-contact sales agreement within the meaning of the Fair Trading Act 1999, sections 73 to 75 of that Act do not apply on the cancellation of that

contract.

(5) Without limiting the generality of section 20, the Commission may determine, and provide for in the licence of a licensee, conditions

setting out—

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 7 Act No. 85/2001
(a) circumstances in which a licensee must continue to supply or sell electricity to a customer to whom the licensee
supplies or sells electricity under a
deemed contract under this section after
that contract comes to an end in
accordance with sub-section (7)(d) or
(e); and
(b) events on the happening of which a deemed contract under this section may come to an end.

(6) A condition referred to in sub-section (5)(a) must provide for the tariff or tariffs and the terms and conditions for the continued

supply or sale of electricity to be determined

by the licensee.

(7) A deemed contract under this section comes

to an end—

(a) if the contract is terminated; or

(b)

if the customer enters into a new contract for the purchase of electricity from the licensee in respect of the same premises, on the date of taking effect of that new contract; or

(c)

if the customer transfers to become the customer of another licensee; or

(d)

at the end of 180 days after the day on which the deemed contract commences; or

(e)

on the happening of an event determined and provided for by the Commission under sub-section (5)(b)—

whichever occurs first.
Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 7

(8) Sub-section (1) does not apply where the relevant customer referred to in that sub- section commences to take the supply of electricity by fraudulent or illegal means.

(9) Sub-section (2) does not apply where the relevant customer referred to in that sub- section takes the supply of electricity by fraudulent or illegal means after the

cancellation of the supply and sale contract

referred to in sub-section (2)(a).

(10) In this section—

"cooling-off period" means the period

entitled under a supply and sale
contract or section 63 or 71 of the Fair

within which a relevant customer is contract;

"relevant customer" has the same meaning as in section 36;

"relevant licensee", in relation to premises,

means the licensee who is responsible
for the electricity supplied at those
premises for the purposes of settlement
of the wholesale electricity market;

"supply and sale contract" means a contract for the supply or sale of electricity, whether oral or in writing,

or partly oral and partly in writing.

(11) This section expires on 31 December 2003.'.

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 8 Act No. 85/2001

8. Prohibited interests

(1) In section 68(2) of the Electricity Industry Act

2000, for "and (8A)" substitute ", (8A) and (8B)".

(2) After section 68(8A) of the Electricity Industry

Act 2000 insert—

"(8B) If sub-section (8A) applies in respect of an

interest of a person in a generation company,
the generation company does not hold a
prohibited interest within the meaning of
sub-section (2) as a result of having a
controlling interest or a substantial interest in
another licensee if that controlling interest or
substantial interest arises by reason only that
the first-mentioned person has a relevant

interest in shares in that other licensee.".

9. Amendment of section 7A to change Act references

In section 7A of the Electricity Industry Act
2000, for "Office of the Regulator-General Act
1994" (wherever occurring) substitute

"Essential Services Commission Act 2001".

_______________
Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 10

PART 3—GAS INDUSTRY ACT 2001

See:

10. Consequential amendment

Act No. 31/2001

In section 29(e) of the Gas Industry Act 2001, and
for "sections 46 and 47" substitute "section 46". amending
Act No.
44/2001.
LawToday:
dpc.vic.
gov.au

11. Supplier of last resort

After section 34(11) of the Gas Industry Act
2001 insert—

"(11A) The terms and conditions of a requirement referred to in sub-section (1) may include a condition setting out circumstances in which

a licensee must continue to supply or sell gas
to a customer to whom the licensee supplies
or sells gas under an obligation under sub-
section (5) after that obligation comes to an
end in accordance with sub-section (6)(a).

(11B) A condition referred to in sub-section (11A) must provide for the tariff or tariffs and the terms and conditions for the continued

supply or sale of gas to be determined by the

licensee.".

12. New section 46 substituted and section 47 repealed

For sections 46 and 47 of the Gas Industry Act
2001 substitute—

'46. Deemed contracts for supply and sale for

relevant customers

(1) If a relevant customer commences to take

supply of gas at premises from the relevant
licensee without having entered into a supply
and sale contract with that licensee, there is

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 12 Act No. 85/2001

deemed, on the commencement of that
supply, to be a contract between that licensee
and that person for the supply and sale of

gas—

(a) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract

under section 44; and

(b)

on the conditions determined and sub-section (5).

(2) If a relevant customer—

(a) commences to take supply of gas at premises under a supply and sale contract with the relevant licensee; and
(b)

that customer cancels the supply and period relating to the contract; and

(c)

that customer continues to take gas from that licensee without entering into a further supply and sale contract with that licensee—

there is deemed, on the cancellation of the
supply and sale contract, to be a contract
between that licensee and that customer for

the supply and sale of gas—

(d) at the tariff or tariffs, and on the terms and conditions, that would apply if that customer were a party to a contract

under section 44; and

(e)

on the conditions determined and sub-section (5).

Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 12

(3) A deemed contract under sub-section (2) is

deemed to commence on the commencement

of supply referred to in sub-section (2)(a).

(4) If a supply and sale contract referred to in

sub-section (2)(a) is—

(a) a contact sales agreement within the meaning of the Fair Trading Act 1999, sections 65 to 67 of that Act do not apply on the cancellation of that contract;
(b) a non-contact sales agreement within the meaning of the Fair Trading Act 1999, sections 73 to 75 of that Act do not apply on the cancellation of that

contract.

(5) Without limiting the generality of section 28, the Commission may determine, and provide for in the licence of a licensee, conditions

setting out—

(a) circumstances in which a licensee must continue to supply or sell gas to a customer to whom the licensee supplies or sells gas under a deemed contract under this section after that contract comes to an end in accordance with sub-section (7)(d) or (e); and
(b) events on the happening of which a deemed contract under this section may come to an end.

(6) A condition referred to in sub-section (5)(a) must provide for the tariff or tariffs and the terms and conditions for the continued

supply or sale of gas to be determined by the
licensee.

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 12 Act No. 85/2001

(7) A deemed contract under this section comes

to an end—

(a) if the contract is terminated; or

(b)

if the customer enters into a new contract for the purchase of gas from the licensee in respect of the same premises, on the date of taking effect of that new contract; or

(c)

if the customer transfers to become the customer of another licensee; or

(d)

at the end of 120 days after the day on which the deemed contract commences; or

(e)

on the happening of an event determined and provided for by the Commission under sub-section (5)(b)—

whichever occurs first.

(8) Sub-section (1) does not apply where the relevant customer referred to in that sub- section commences to take the supply of gas

by fraudulent or illegal means.

(9) Sub-section (2) does not apply where the relevant customer referred to in that sub- section takes the supply of gas by fraudulent

or illegal means after the cancellation of the
supply and sale contract referred to in sub-

section (2)(a).

(10) In this section—

"cooling-off period" means the period

entitled under a supply and sale
contract or section 63 or 71 of the Fair

within which a relevant customer is contract;

Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 13

"relevant customer" has the same meaning as in section 43;

"relevant licensee", in relation to premises, means the licensee last responsible for the supply and sale of gas to those

premises;

"supply and sale contract" means a

contract for the supply or sale of gas,
whether oral or in writing, or partly oral

and partly in writing.

(11) This section expires on 31 August 2004.'.

13. Approval of rules by ORG

In section 65 of the Gas Industry Act 2001, for
sub-section (1) substitute—

"(1) ORG, in respect of any retail gas market

rules submitted to it under this Division, may

determine to—

(a) approve the rules; or
(b) approve the rules subject to changes; or

(c) not approve the rules.".

14. Cost recovery

(1) In section 68(1)(a) of the Gas Industry Act 2001,

after "in connection with" insert "the costs of, or
in relation to,".

(2) In section 68 of the Gas Industry Act 2001, for

sub-section (2) substitute—

"(2) An Order under sub-section (1) may—

(a)

confer powers and functions on, and leave any matter to be determined by, ORG; and

(b)

without limiting paragraph (a), direct ORG to make a determination in

Energy Legislation (Miscellaneous Amendments) Act 2001

s. 15 Act No. 85/2001
respect of such factors and matters, or
in accordance with such procedures,
matters or bases, as are specified in the
Order, or both.

(3) ORG, under this section, has—

(a)

the powers and functions conferred on it under an Order under sub-section (1); and

(b)

the power to make any determination required or permitted under an Order under sub-section (1).

(4) An Order in effect under this section

immediately before the commencement of
section 14 of the Energy Legislation
(Miscellaneous Amendments) Act 2001 is
deemed to be an Order made under this
section as amended by that Act, and sub-

sections (2) and (3) apply accordingly.

(5) A determination made by ORG before the

commencement of section 14 of the Energy Legislation (Miscellaneous Amendments) Act 2001 pursuant to an Order under this
section, is deemed to be a determination
under sub-section (3).".

15.  Provision by VENCorp of certain services outside Victoria

In section 160(1)(j) of the Gas Industry Act
2001, for "in the retail gas market in Victoria"
substitute—

"—

(i) in the retail gas market in Victoria; or

(ii)  with the approval of the Minister, after consultation with the Treasurer, in a retail gas market elsewhere outside Victoria".

Energy Legislation (Miscellaneous Amendments) Act 2001

Act No. 85/2001 s. 16

16. Amendment of reference to ORG

(1) In section 68(3) of the Gas Industry Act 2001,

for "ORG" substitute "The Commission".

(2) After section 68(3) of the Gas Industry Act 2001

insert—

"(3A) A determination under sub-section (3) is a

determination for the purposes of the

Essential Services Commission Act 2001.".

17. Correction of minor errors

(1) In section 34(8)(b)(ii) of the Gas Industry Act

2001, for "a" substitute "at".

(2) In section 219 of the Gas Industry Act 2001, in

paragraph (a) of the definition of "prescribed

offence", for "to be under" insert "under section".

═══════════════
Energy Legislation (Miscellaneous Amendments) Act 2001

Endnotes Act No. 85/2001

ENDNOTES

Minister's second reading speech—

Legislative Assembly: 18 October 2001

Legislative Council: 4 December 2001

The long title for the Bill for this Act was "to make miscellaneous
amendments to the Electricity Industry Act 2000 and the Gas Industry
Act 2001 and for other purposes."

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